Lack of Internal Security Leads to Diplomatic Incident

By Eric Lundquist |
Posted 2008-03-03

This is a blog post from my colleague Mike Vizard.

The fragility of internal security controls is high on the minds of the German people in the wake of a recent tax scandal. Citizens of Germany that had been hiding certain financial assets from their government by creating bank accounts in nearby Lichtenstein were shocked to discover that the Federal Government of Germany would pay an employee of a Lichtenstein bank to copy their financial records onto a DVD drive and then hand them over the German government.

That employee is now reportedly living in Australia under the terms of his deal with the German government. Meanwhile, the number of German people suddenly remembering to declare certain assets to the German government is reportedly increasing while relations between Germany and Lichtenstein are reportedly strained over the matter.